Taxes Management Act 1970 section 55

Recovery of tax not postponed

Section 55 deals with what happens to tax payment obligations when a taxpayer appeals against a tax assessment, amendment, or closure notice — specifically, how much tax must still be paid during the appeal and how much can be postponed.

• Tax charged by an assessment, amendment, or closure notice remains due and payable even when an appeal is lodged, unless the taxpayer successfully applies to postpone some or all of the payment
• A taxpayer who believes they have been overcharged can apply to HMRC in writing within 30 days to postpone payment of the disputed amount, and if HMRC do not agree, the matter can be referred to the tribunal within a further 30 days
• Where an accelerated payment notice or partner payment notice has been issued, the tax covered by that notice cannot be postponed, and any existing postponement is automatically cancelled when the notice is given
• Once the appeal is finally determined, any tax still owed becomes payable as if it were newly assessed on the date HMRC issue notice of the total amount due, and any tax that has been overpaid is repaid

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